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(a) Tatu Ltd. wants to takeover Mantu Ltd. and has offered a swap ratio of 1:2 (0.5 shares for everyone share of Mantu Ltd.). Following

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(a) Tatu Ltd. wants to takeover Mantu Ltd. and has offered a swap ratio of 1:2 (0.5 shares for everyone share of Mantu Ltd.). Following information is provided Tatu Ltd. Mantu Ltd. 24,00,0004,80,000 8,00,000 2,40,000 72 7 times 14 Profit after tax Equity shares outstanding (Nos.) EPS PE Ratio 10 times 30 Market price per share You are required to calculate (i) The number of equity shares to be issued by Tatu Ltd. for acquisition of Mantu Ltd (ii) What is the EPS of Tatu Ltd. after the acquisition? i) Determine the equivalent earnings per share of Mantu Ltd. (iv) What is the expected market price per share of Tatu Ltd. after the acquisition, assuming its PE multiple remains unchanged? (v) (8 Marks) Determine the market value of the merged firm Following information is given Exchange rates: Canadiarn Canadian dollar 0.671 per DM (3-months) Interest rates: DM 7.5% pa. Canadian Dollar-9.5%pa To take the possible arbitrage gains, what operations would be carried out? Write a short note on Real Estate Regulatory Authority (RERA). (b) dollar 0.666 per DM (spot) (8 Marks) (4 Marks) (c)

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